Citi fraud: FIR against Vikram Pandit, others

Gurgaon, Jan 05 (Agencies): The local police on Wednesday registered an FIR naming Indian-born global CEO of the bank Vikram Pandit and 10 other officials in the Rs 300-crore Citibank fraud case.

Besides Pandit, the FIR filed Agarwal with the Gurgaon police also names Citibank Chairman William R Rhodes along with other senior officials based in India.

Meanwhile, the Citibank has dismissed allegations of involvement of its senior executives in the Rs 300 crore fraud at its Gurgaon branch as claimed by high networth individual (HNI) Sanjeev Agarwal who lost Rs 32.43 crore in the cheating case.

In the FIR, Agarwal, who is a resident of Gurgaon, alleged criminal breach of trust, falsification of accounts, cheating and criminal conspiracy by the officials of the Citibank.

"All persons named (in FIR)... in collision and conspiracy with each other and other known or unkonwn persons, (and) have misappropriated large sums of money to the tune of Rs 32.43 crore" Agarwal said in his complaint.

Aggarwal had alleged that it was not possible for an employee to commit such a big fraud without the knowledge of the bank.

"Being a multinational bank of formidable repute, we trusted Citibank NA with our life savings which have now been wiped out by an illegal act and offence committed by the Bank and its employees.

"It is impossible for an employee to undertake fraud of such a scale without the knowledge of the bank...I am devastated at this loss on my savings and strongly feel that Citibank NA is accountable to return my money", he had said in a statement.

The fraud at the Citibank's Gurgaon branch, involving diversion of depositors money into the stock market, was uncovered last week.

Besides Aggarwal, several other high networth individuals (HNIs), the victims of the fraud, have complained to the police that their securities were encashed without their knowledge.

The case has been registered under sections 409, 477A, 420 and 120B of IPC.

The others who have been named in the FIR include Citibank's senior officials CFO John Gerspach and COO Doughlas Peterson (both based in New York).

The others who figure in the FIR are Amit Zarpuri, Ashwini Chaddha, Amrita Farmahan, Rahul Soota, N Rajshekaran, Pramit Jhaveri and Shivraj Puri, the main accused in the fraud case.

The Citibank has, however dismissed the allegations of Agarwal. “As this individual (Sanjeev Aggarwal, managing director of Helion Advisors) knows well, Citi identified the fraud and immediately reported the matter to the regulators and the law enforcement agencies", Citibank said in a statement.

"His claims against senior executives are completely without basis and we intend to contest them vigorously. It was on Citi complaint that the Gurgaon police lodged an FIR and are currently investigating the matter", the statement said, adding the bank would continue to work with authorities on the investigation.

Police rules out questioning Pandit

The local police on Wednesday ruled out the possibility of questioning Citibank's global CEO Vikram Pandit and other top honchos in connection with the Rs 300 crore fraud case at a bank branch here.

"At this point of time the possibility of involvement of global CEO...India head looks remote" Gurgaon Police Commissioner SS Deswal told reporters here.

Police, however, will question the local staff of the Gurgaon Citibank branch in connection with the FIR filed by a high networth individual and managing director of Helion Advisors Sanjeev Aggarwal who lost Rs 32.43 crore in the fraud case.

"We are examining the details provided in the complaint as well as by the bank", Deswal added.